Property Accountants NZ Limited is started by a CPA credited Accounting and Advisory firm - Kinghans Limited.
We provide business advice, property advise and all the latest news/updates including tax news related to all properties in NZ. We can assist you at all levels of property advisory and accounting.
The new ring-fencing rules apply to residential land - mainly residential rental properties. This includes overseas property held by a New Zealand tax resident.
The rules generally apply no matter how the property is held. The rules apply to property owned by you or a partnership, a look-through company, a trust, or a close company.
If you have a tailored tax code and rental income, the new ring-fencing rules may affect you.
From the 2019-20 income year new ring-fencing rules apply to residential property deductions. Ring-fencing means residential property deductions can only be used to offset income from residential property. You cannot use rental losses to offset other income like salary and wages.
Under the rules, you can only claim deductions up to the amount of income you earn from the property for the year.
You must carry forward deductions over that amount. You can use these deductions to offset your rental income in future income years.
GST or Not on Airbnb? Should I be registered?
Can I Claim GST on the purchase of the property? What does it mean that the vendor is or is not GST registered?
Is there Tax on Airbnb?
Should i use a host?
Who can help me dress my property?
Contact us to arrange an appointment to discuss all these points?
Charlotte and Andrew Spenceley do not want to sell the land they bought for a new family home, but a health crisis means they have to, and they will have to pay tax on the capital gains they make because of it.
In these situations, if the homeowner isn’t looking to profit the outcome could seem to be quite harsh.
The bright-line test, which was introduced by the National Government in 2015 but extended by the Labour Government to require properties to be held first for five years and then 10 years, was intended to tax capital gains on investment properties.
Under interest deductibility rules and extension of the bright-line test, the government has released a document which defines a New Build and which properties will be exempted from the proposed new interest limitation rules and subject to a five-year bright-line test (rather than a ten-year test)
In March 2021 the government announced its intention to limit the deductibility of interest on residential investment property.
This month, the government released a detailed document to the decisions they made regarding those tax changes.
Proposed extension to 10 years, excluding new builds, and changes to the treatment of times when the property is not the owner's main home.
This fact sheet summarises changes the Government intends to make to the taxation of residential property.
Once legislation is enacted, more details will be available at ird.govt.nz/property.
This fact sheet is to inform people making decisions about buying or selling property of the proposed changes and how they might affect them.
